Sirius Board Sued

The City of Miami (Florida) Police Relief and Pension Fund is suing the Board of Directors of Sirius for not fighting a takeover by Liberty Media Corp. With Sirius facing bankruptcy three years ago, Liberty loaned Sirius $530 million with a caveat that Sirius not adopt a poison pill or any other defense measures that would stop Liberty from acquiring Sirius after three years from the date of the loan. Liberty has acquired more than 50 percent of the stock in Sirius without paying a premium on the shares, which is typical in an acquisition. The pension fund states that the Board's agreement not to fight a takeover by Liberty Media was a violation of the Board's fiduciary duty to stockholders.